Page 999 - Week 03 - Thursday, 10 April 2014
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It is important to note that the bill and the determined threshold have been developed in consultation with industry experts. The amendments provide positive outcomes for both the ACT Revenue Office and external stakeholders such as local businesses.
Other jurisdictions have provisions which prevent the avoidance of conveyance duty by tax and commercial leases which have a premium paid on the grant or transfer of the lease. This bill aligns the territory with other jurisdictions that have successfully implemented a premium-based method for imposing duty on commercial leasing arrangements being used in lieu of a conveyance.
The long-term lease provisions in the Duties Act are now overly burdensome and ineffective in achieving the desired outcome. These legislative changes are necessary for ensuring the territory still retains provisions to capture commercial leasing arrangements that are intended as a de facto transfer of land. The amendments I have proposed will bring forward stronger, more effective anti-avoidance provisions for commercial arrangements which will no longer be to the detriment of the long-term sustainability of local businesses in the territory.
This bill removes market distortions. I am very fond of bills that remove market distortions and inequities resulting from existing provisions. The implementation of more appropriate duty provisions will improve the economic environment for local businesses and businesses looking to invest in the territory. More investment may also result in positive commercial competition within the territory’s economy.
I commend the Duties (Commercial Leases) Amendment Bill 2014 to the Assembly. I will resist the temptation at this late hour on Thursday of the sitting week to engage in further debate with the shadow treasurer about the importance of cutting duties. I do note that I am the one supporting it. I am the one supporting the cutting of duties, and those opposite are the ones opposing the cutting of duties. So it is with a certain amount of amusement that I sit here and listen to a lecture from the shadow treasurer on the importance of cutting duties.
Mr Smyth: So what will the premium be? What will the premium be?
MR BARR: Mr Smyth, you are always welcome to join with the government and every sensible policy maker and economist in wanting to abolish inefficient taxation and move to a more efficient revenue base for the territory. The government will continue, in spite of the opposition from those opposite, to reform our taxation system. Today’s legislation is an important part but by no means the only part of the taxation reform that the government will continue to pursue because it is the right policy decision for this economy, for this community, and we must have a simpler, fairer and more efficient taxation system. I am glad that I have got some animation and response from those opposite at the end of this sitting week. I commend the bill to the Assembly.
Question resolved in the affirmative.
Bill agreed to in principle.
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